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Automotive Refinish Coatings Market Overview
The global automotive refinish coatings market size is estimated to be $8,244.3 million in 2017 and is expected to witness a CAGR of 5.1% during the forecast period. The rising disposable income coupled with the growing demand of recreational vehicles is the major factor driving the automotive refinish coatings market. The growing number of vehicles on road has resulted in increased road congestion, which in turn has increased the rate of vehicle collision across various regions such as North America, Europe, and Asia-Pacific, among others. Apart from this, the increasing number of cars globally has resulted in a higher demand for various products of refinish coating by the automobile service industry, thereby benefiting the market.
GLOBAL AUTOMOTIVE REFINISH COATINGS MARKET, BY PRODUCT TYPE, KILOTONS (2016 - 2023)
On the basis of product, the automotive refinish coatings market is segmented into clearcoats, basecoats, primer and filler, and others. In terms of volume, the clearcoats category would continue to lead the market during the forecast period. However, primers and fillers is expected to be the fastest growing category during the forecast period. This is mainly due to the fact that the primers and fillers are applied first during the refinishing process to smoothen the surface.
Different resins are used to provide additional features and improve efficiency. In terms of value, polyurethane resins acquired a major share, with close to 55% contribution in 2017 in the global automotive refinish coatings market, as they are cost effective than other resins.
Among all technologies used in the automotive refinish coatings market, the solvent-borne category is estimated to register the highest market share, with close to 60% contribution in 2017. This is because they are cost effective when compared to other technologies. However, the water-borne technology is expected to be the fastest growing category in the market, owing to the supportive government policies to boost the reliance on environment-friendly technologies in order to lower VOC emissions.
Based on auto type, the automotive refinish coatings market is segmented into cars, commercial vehicles, two-wheelers, and others. In terms of value, cars are estimated to dominate the industry with a share of 70.1% in 2017, followed by commercial vehicles. This is on account of the increasing demand for recreational vehicles in North America and Europe. Additionally, growth in car insurance and rising insurance claims upon accidents are also boosting the growth of the global automotive refinish coatings market.
Globally, Asia Pacific has been leading the automotive refinish coatings market with an estimated share of close to 35% in 2017 in terms of value. The growth in the region is driven by the increasing number of collisions in developing countries due to increased congestion and population; and increase in the demand of vehicles in majority of the countries such as China, India, and Japan, among others. Apart from this, the rising demand of two wheelers, passenger cars, and commercial vehicles in emerging markets and the increasing commercial fleet due to logistics demand are a few other factors driving the demand for automotive refinish coatings.
Automotive Refinish Coatings Market Dynamics
The rising disposable income is one of the major factors driving the growth of the automotive refinish coatings market. Refinish coatings for the automotive industry are increasingly being used in the emerging nations of India, China, and others. With the growing GDP and increasing income, automobile sales have increased in recent years. For instance, with the increasing GDP in China, the automotive sales are increasing considerably, thereby leading to the increased use of refinish coating new vehicles.
The increase in disposable income allow people to spend more on luxury vehicles and customization of their vehicles, and avail cab rental services which will result in a surge in the demand of automotive after services and auto insurance, which will in turn drive the market for automotive refinish coatings. Thus, an increase in the GDP directly results in more expenditures and thus, increase in more demand of vehicles, thereby leading to the growth of automotive refinish coatings market.
One of the major restraints for the growth of the automotive refinish coatings market is the rising stringent regulations for volatile organic compound (VOC) emissions. Automobile refinish coatings generate large amount of VOC emissions which cause air pollution. The VOC emissions are released in the atmosphere during surface preparation and coating application, which add to the air pollution. The stringent regulations related to the use of automobile refinish coatings, such as the National Emission Standards for hazardous air pollutants (NESHAP), act as a major restraint to the growth of the market.
Automotive Refinish Coatings Market Competitive Landscape
The global automotive refinish coatings market is highly fragmented with the presence of a large number of small and medium-sized players. A majority of the companies prefer entering into new partnerships, joint ventures, and collaborations in the market to increase their respective customer base. Moreover, the major players operating in this industry are focusing on new product developments to strengthen their presence in the market.
The automotive refinish coatings market has witnessed rapid growth with the participation of some of the biggest players such as PPG Industries Inc., Axalta Coating systems Ltd., The Sherwin Williams Company, BASF SE, and AzkoNobel N.V. The other key players in the industry includes Convestro AG, Esdee Paint Ltd., Kansai Paints Co. Ltd., KAPCI Coating Co. Ltd., KCC Corporation, The Lubrizol Corporation, NOROO Paint & Coatings Co. Ltd, Nippon Paint Holding Co. Ltd., S.Coat Co., Ltd., and Berger Paints India Ltd.